HR Glossary

Non-Compete Agreement

What is a Non-Compete Agreement?

A non-compete agreement is a contract between an employee and employer in which the employee agrees not to compete with the employer for a certain amount of time after leaving the company. Non-compete agreements are often used by companies to protect their trade secrets and other confidential information.

What do you do if someone breaches a Non-Compete Agreement?

If an employee breaches a non-compete agreement, the employer has several options. The employer may choose to file a lawsuit to enforce the agreement. If the employer decides to file a lawsuit, the employer will likely ask the court to order the employee to stop violating the agreement and to pay damages to the employer. The employer may also choose to file a complaint with the state Attorney General’s office. The Attorney General’s office may investigate the situation and take action to enforce the agreement.

How do you build a Non-Compete Agreement?

When it comes to ensuring that your company’s confidential and proprietary information remains just that- confidential and proprietary- you may want to consider implementing a non-compete agreement. This type of agreement can help to protect your interests by ensuring that any employee who leaves your company is unable to work for a competitor or start their own business in direct competition with your company for a certain period of time.

There are a few things to keep in mind when creating a non-compete agreement. The agreement should be tailored to your specific company and the industry in which it operates. It should also be specific as to the types of information and activities that are covered by the agreement. In addition, the agreement should be reasonable in terms of the time period and geographic area it covers.

When drafting a non-compete agreement, it is important to work with an attorney who can help you to create a document that is tailored to your specific needs and is enforceable in court.

Who uses Non-Compete Agreements?

Non-compete agreements are most commonly used by employers in the context of protecting trade secrets. By requiring employees to sign a non-compete agreement, an employer can ensure that an employee will not divulge any confidential information or take any clients or customers with them when they leave. Non-compete agreements can also be used to protect an employer’s business interests by preventing employees from starting a competing business. However, non-compete agreements can also be used by employees to protect their own interests. For example, an employee who has been offered a new job may want to negotiate a non-compete agreement with their current employer to ensure that they are not prevented from working in their field for a certain period of time after leaving their current job.


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